Financial Analysis: Trident Brands (OTCMKTS:TDNT) & Nephros (NASDAQ:NEPH)

Nephros (NASDAQ:NEPH) and Trident Brands (OTCMKTS:TDNT) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Profitability

This table compares Nephros and Trident Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nephros	8.26%	15.81%	12.22%
Trident Brands	N/A	N/A	N/A

Valuation and Earnings

This table compares Nephros and Trident Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nephros	$14.16 million	3.36	$70,000.00	$0.13	34.46
Trident Brands	N/A	N/A	N/A	N/A	N/A

Nephros has higher revenue and earnings than Trident Brands.

Risk and Volatility

Nephros has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Trident Brands has a beta of -4.15, meaning that its share price is 515% less volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of Nephros shares are held by institutional investors. 6.7% of Nephros shares are held by insiders. Comparatively, 33.9% of Trident Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nephros and Trident Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nephros	0	1	1	0	2.50
Trident Brands	0	0	0	0	0.00

Nephros presently has a consensus price target of $6.00, suggesting a potential upside of 33.93%. Given Nephros’ stronger consensus rating and higher probable upside, equities analysts clearly believe Nephros is more favorable than Trident Brands.

Summary

Nephros beats Trident Brands on 9 of the 10 factors compared between the two stocks.

About Nephros

Nephros, Inc., a commercial-stage company, develops and sells water solutions to the medical and commercial markets in the United States. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also manufactures and sells water filters that enhance the taste and odor of water, as well as reduce biofilm, cysts, particulates, and scale build-up in downstream equipment. It markets its products to food service, hospitality, convenience store, and health care markets, as well as medical institutions. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.

About Trident Brands

Trident Brands Incorporated, together with its subsidiaries, focuses on developing branded consumer products and ingredients in the nutritional supplement, life sciences, and food and beverage categories in the United States and Canada. The company develops, markets, and sells a portfolio of DHA supplements under the Brain Armor brand. It also holds various banking facilities; and licenses associated with the manufacturing, importation, and sale of natural health and nutrition products. The company was formerly known as Sandfield Ventures Corp. and changed its name to Trident Brands Incorporated in July 2013. Trident Brands Incorporated was incorporated in 2007 and is based in Boca Raton, Florida.